I don’t see gold as the solution for the future. Yes, it’s better than nothing which is what currently backs our currency...
We switched to the petro dollar under Nixon when he took us off the gold... wasn’t it 1973 when he said that we would no longer redeem gold for dollars and our currency started spiraling. So he negotiated the petro dollar as the gold replacement by guaranteeing military protection for the Arab countries. I could be wrong, but until we find a replacement for oil, the petro dollar has given us a lot of roller coaster rides in the past 40 years.
This is my humble opinion based upon the school of hard knocks and a good memory (but it is short.)
We switched to the petro dollar under Nixon when he took us off the gold... wasn’t it 1973 when he said that we would no longer redeem gold for dollars and our currency started spiraling. So he negotiated the petro dollar as the gold replacement by guaranteeing military protection for the Arab countries. I could be wrong, but until we find a replacement for oil, the petro dollar has given us a lot of roller coaster rides in the past 40 years.
This is my humble opinion based upon the school of hard knocks and a good memory (but it is short.)
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That’s a pretty good memory. What happened in 1973 was the first OPEC oil embargo.
According to this piece from the richmond fed.
https://www.richmondfed.org/faqs/gold_silver/
Is U.S. currency still backed by gold?
No, when the United States stopped selling gold to foreign official holders of dollars at the rate of $35 an ounce in 1971, it brought the gold exchange standard to an end. In 1973, the United States officially ended its adherence to the gold standard. Many other industrialized nations also switched from a system of fixed exchange rates to a system of floating rates. In August 1974, President Ford repealed the prohibition on the public’s owning gold or engaging in gold transactions. Today, no country bans private ownership of gold.